Lithuania, located in Northern Europe, has become an attractive destination for entrepreneurs seeking to establish a business in Europe. The country boasts a business-friendly environment, low tax rates, and a well-educated workforce. The process of registering a business in Lithuania is relatively straightforward, and this article will outline the steps you need to take to get your business up and running.
Table of Contents
Choose your Business Structure
The first step in registering a business in Lithuania is to decide on the legal structure of your business. Lithuania offers several business structures, including a sole proprietorship, partnership, limited liability company, and joint-stock company. It is essential to choose the right structure for your business, as it will affect the taxes you pay, the liability you have, and the level of control you have over the business.
Choose Your Business Name
Once you have decided on the legal structure of your business, the next step is to choose a name for your business. The name must not be already in use and should be registered with the Register of Legal Entities.
Register Your Business
The process of registering your business in Lithuania involves the submission of several documents to the Register of Legal Entities. These documents include:
Articles of Association
Shareholders’ agreement (if applicable)
A document identifying the shareholders or participants in the business
A document identifying the directors or managers of the business
A document proving the legal address of the business
A document proving the payment of the state fee
The documents must be submitted in Lithuanian, although translations in other languages can be attached. It is advisable to seek the services of a local attorney or legal firm to ensure that the documents are correctly completed and submitted.
Obtain Necessary Licenses and Permits
Depending on the type of business, you may need to obtain additional licenses and permits to operate legally in Lithuania. For example, if you plan to sell alcohol or tobacco products, you will need to obtain a license from the State Tax Inspectorate.
Register for Taxes
All businesses operating in Lithuania must register for tax purposes. You will need to register with the State Tax Inspectorate and obtain a tax identification number. The tax rate for businesses in Lithuania is currently 15% on profits.
Open a Bank Account
To operate your business in Lithuania, you will need to open a bank account. This will enable you to receive payments from customers and pay suppliers and employees. Most banks in Lithuania offer online banking services, making it easy to manage your business finances.
In conclusion, the process of registering a business in Lithuania is relatively straightforward. However, it is essential to follow the correct procedures to avoid delays or legal issues. Seeking the services of a local attorney or legal firm can help you navigate the legal requirements and ensure that your business is registered correctly.
Generis Global is a legal firm with extensive experience in assisting businesses in Lithuania. Our team of attorneys can help you with every aspect of starting and running your business in Lithuania. Contact us today to learn how we can help you with the legal part of your business journey in this country.